Economics
AMLO’s Curveball and Soaring Inflation Rattle Mexico Peso Bets
- Investors scramble for information on new central bank nominee
- Mexico inflation rate has more than doubled this year to 7.05%
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Analysts are pulling back from bullish Mexican peso bets after a one-two punch from soaring inflation and the president’s surprise, last-minute nomination change for the head of the central bank. It’s undermining the currency just as a new variant of Covid-19 triggers a global flight from risk.
The currency slumped as much as 2.6% early Friday, extending losses from Wednesday when President Andres Manuel Lopez Obrador swapped his nomination for the central bank governor from former Finance Minister Arturo Herrera to Victoria Rodriguez -- a finance ministry official with little experience of monetary policy -- and inflation hit a two-decade high.